Thursday, July 21, 2011

A Monopoly Divided

We can all thank Theodore Roosevelt for the anti-trust laws that protect the American consumer against monopolistic and anti-competitive business practices. But do corporations ever form duopolies or triopolies and simply accept their staggered profit margins? Perhaps...

As I observe the apathy and lack of willingness of other fast food restaurants to try and compete with McDonalds, I can't help but wonder whether if large-scale corporations ever "call a huddle" and sit down to decide industy-leader positions. I mean, do the high-ups of McDonalds invite the executives of Burger King, Taco Bell, and Wendys to get together on some sort of corporate conference call and just say, "Hey, look guys...let's let McDonalds be number one. In return, they'll deal with media and Hollywood barrages on the Fast Food industry, smiling and waving with their overpaid lawyers." After a billionaire-baronesque puff from the cigar, the McDonalds executive representative would continue, "and as for Burger King and Wendys...you two can dish it out for second. Taco Bell, since the burger market is occupied by 3 of us, we can't risk letting you compete with us, so no breakfast menu. Ok?".

What do YOU think? Are corporations this sneaky? Would you put it past them?

I think any large corporation that's able to compete with McDonalds would do just about anything to get their share. They've been ripping off each other for years and I don't see an end to it any time soon.

This reminds we about that movie starring Matt Damon where the two companies work together to increase their stock for one time, and then increase the other companies stock at another. So I would believe yes things like this happen. Great with the blog man!

there might be some competition but mostly it will be just as you wrote. i dont think that those companies would try to fight each other while having an armistice would be better for all of them. The fear of loosing everything could make "smaller" cooperations give into that situation.